Farming – always the ups and downs of climate, markets and stock values !
Once again the government took a snap-shot at 30 April throughout New Zealand and across various markets to determine the Herd Value to be used for tax purposes (also called the NAMW – national average market value).
With the easing in the schedule and some areas affected by drought the sheep value eased back by 2 – 10%.
To give an idea of the changes
Ewe hoggets 94 88
2th ewes 131 126
MA Ewes 118 113
R 5+ ewes 101 90
So for those farmers with sheep in the herd scheme at your 2014 balance date- this will unfortunately trigger a non-deductible decrease as the opening stock is revalued.
As expected with the strong beef schedule achieved the values moved from 13 -20% up on the beef cattle and Friesian bull values.
This effectively inflation proofs the movement upwards for those cattle in the herd scheme.
Again to show a couple of the dollar movements:
Beef- MA Cows 986 1,171
Beef- R 2 bulls/steers 933 1,104
Friesian-R2 780 900
Special Alert Livestock Herd Scheme 2015
This is an overview of the changes. We are available to talk in more detail about how this impacts your 2015 farming figures.
More detailed figures are shown below or for a printable version click here
The most extreme movement has been seen in the dairy cattle where the values have reduced by 16 - 28%, which given the current returns may even be seen as conservative.
Friesian R1 heifers 946 681
Friesian MA cows 1,963 1,655
Minimal change in these values except for the R2 stags which moved up 20%.